Okay I'm asking this about new, now shippudden naruto so ummmmmmm...
"Has Sasuke completelly lost it, or is my friend just hallucinating I was just wondering, it's you guys's opinion and do you think he'll ever be able to come back, is anyone going to ever forgive him, I mean his childhood was pretty traumatizing

Yeah, I think he has officially lost it. He went crazy. But as naruto begins to learn more about his own past and what happened to his parents and learns to accept that I believe that his "hidden power" to touch the hearts of people will help him to forgive. Remember Sasuke has not done anyting too bad. Killer Bee will forgive him and the only person he has killed was Danzo and personally speaking I was relieved he did. But him losing it is understandable, considering what the village elders made itachi do.